Monthly and upfront costs
| Cost item | Renting | Buying |
|---|---|---|
| Regular housing payment | Monthly rent and any agreed recurring charges. | Mortgage payment, based on the loan amount, rate and term. |
| Management fee and rates | Check the tenancy agreement for responsibility. | Budget for management fees and rates as applicable. |
| Repairs and insurance | Responsibility depends on the tenancy agreement and the issue. | Allow for maintenance, repairs and suitable insurance. |
| Upfront cash | Deposit, first rent, agency fee and moving costs. | Down payment, stamp duty, legal fees, agency fee and mortgage-related charges. |
| Flexibility | Moving depends on lease terms and renewal. | Selling or refinancing involves time, costs and market conditions. |
Compare the same time period
- Choose a realistic period, such as the next three or five years.
- Estimate rent and recurring charges over that period, including likely renewal changes.
- For buying, estimate mortgage payments, management fees, rates, repairs and insurance.
- List upfront transaction costs separately from recoverable deposits or principal repayment.
- Consider the opportunity cost of savings used for the down payment and keep an emergency reserve.
Use estimates carefully
Mortgage rates, property prices, lease terms and maintenance needs can change. A monthly cash-flow comparison does not predict future property prices or determine which option is financially better for every household.
Use the mortgage calculator for repayment scenarios and the rent budget calculator for monthly rent costs. For purchase expenses, see the home purchase cost checklist.
Official information
Information checked on 19 October 2026. Confirm current requirements and charges with the relevant organisation before acting.
Frequently asked questions
Is mortgage repayment directly comparable with rent?
Only as one part of monthly cash flow. Ownership also brings management fees, rates, repairs, insurance and upfront costs.
Should I include the down payment as a monthly cost?
Keep it separate as upfront cash. When comparing longer periods, also consider the return you might have earned on money used for the down payment.
Can this comparison tell me whether to buy?
No. It helps organise costs but cannot account for every personal, market or financing factor. Check actual terms and consider independent professional advice.